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India-Oman Relations

By Amigos IAS

Why is it in the news?

  • Sultan of Oman’s visit to India, the first since assuming office in 2020, signifies the importance both nations place on bilateral ties.

Some of the key highlights

Oman-India Joint Investment Fund

  • Third tranche of $300 million announced, demonstrating a commitment to economic collaboration.
  • Joint venture between State Bank of India and Oman Investment Authority, emphasizing a balanced partnership.
  • Aim is to channel funds into rapidly growing sectors of the Indian economy, fostering mutual economic growth.

Joint Vision Document

  • Adoption of “India-Oman Joint Vision: A partnership for the future” reflects a shared commitment to long-term cooperation.
  • Aligned with Oman Vision 2040 and India’s development vision till 2047, providing a strategic framework for future engagements.

Agreement on Money Laundering

  • Signing an agreement between Financial Intelligence Unit of India and National Centre for Financial Information of Oman underlines joint efforts to combat financial crimes.
  • Focus on preventing money laundering strengthens financial cooperation.
  • Anticipation of signing a Comprehensive Economic Partnership Agreement (CEPA) during the head of state visit highlights the commitment to deeper economic integration.

 

India-Oman Relations

 Economic Cooperation

·       Bilateral trade in 2022-23 at $12.3 billion, showcasing the economic significance of the relationship.

·       India as the 2nd largest market for Oman’s crude oil exports and 4th largest market for non-oil exports signifies the diversification of economic ties.

 

Defence Cooperation

·       Regular biennial bilateral exercises (Al Najah, Eastern Bridge, Naseem Al Bahr) strengthen military-to-military cooperation.

·       Enhances mutual understanding and interoperability between armed forces.

 

Indian Diaspora

·       Presence of around 700,000 Indians in Oman, including workers and professionals, underscores people-to-people ties.

·       Some Indian families residing for over 150-200 years exemplify the historical depth of connections.

 

Maritime Cooperation

·       Oman’s strategic location at the Strait of Hormuz’s gateway crucial for India’s oil imports.

·       The 2018 pact granting India access to the Duqm port enhances maritime cooperation and trade facilitation.

 

Agreements

·       Central Bank of Oman (CBO) and NPCI: MOU signed in 2022 to link payment systems enhances financial connectivity. Facilitates smoother transactions and economic cooperation.

·       Oman News Agency and Asia News International: Exchange of MOUs facilitates information exchange, fostering cultural and media ties.

 

Conclusion

  • Oman’s role as a key pillar in India’s West Asia Policy underscores its strategic importance.
  • Its strategic location enhances mutual security and economic interests.
  • Building on historical ties and adapting to the changing global landscape, India and Oman can jointly contribute to regional stability and prosperity.

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